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Central Bank reveals volume of property appropriated by Georgian commercial banks

Finance Materials 20 January 2021 14:27
Central Bank reveals volume of property appropriated by Georgian commercial banks

BAKU, Azerbaijan, Jan. 20

By Tamilla Mammadova – Trend:

The property appropriated by Georgian commercial banks amounted to 248.6 million lari ($75.5 million) as of November 2020, Trend reports via the Financial Sector Review published by the National Bank of Georgia (NBG).

According to the review, the value of property appropriated by banks increased annually by 37.7 million lari ($11.4 million). In particular, in November 2019, this figure was 210.9 million lari ($64.1 million).

At the same time, according to the NBG, in November the amount of loans written off amounted to 28.6 million lari ($8.6 million) against 22.5 million lari ($6.8 million) in the same period of 2019.

Georgian microfinance companies appropriated 7 million lari ($2.1 million) less borrowers’ property as payment of debts on loans.

At the same time, the microfinance sector, based on the Central Bank’s new regulations as of October 1, created an additional loan-loss reserves which amounted to 108 million lari ($32.8 million).

Large companies account for about half of the property appropriated in the amount of 7 million lari, but the exact distribution can’t be made due to the lack of specifics in the reporting of Rico Credit, Georgia’s largest MFI (microfinance institution).

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